Georgia insurance exam with Complete
Solutions
Which of the following statements is most correct concerning the changing of an irrevocable
beneficiary? Correct Ans-They can be changed only with the written consent of that
beneficiary.
Which of the following provides coverage on a first-dollar basis? Correct Ans-basic expense
policy
Which of the following statements is TRUE about a policy assignment? Correct Ans-It
transfers the ownership rights under the policy to the extent expressed in the assignment form
A guaranteed renewable disability insurance policy Correct Ans-Is renewable at the insureds
option to a specified age
Which of the following is a generic consumer publication that explains life insurance in general
terms in order to assist the applicant in the decision-making process? Correct Ans-Buyer's
Guide
Which of the following is another term for an authorized insurer? Correct Ans-Admitted
Insurers who meet the state's financial requirements and are approved to transact business in
the state are considered authorized or admitted into the state as a legal insurer.
,Which of the following statements is correct regarding a whole life policy? Correct Ans-The
policyowner is entitled to policy loans
What is the purpose of a conditional receipt? Correct Ans-It is intended to provide coverage
on a date prior to the policy issue.
All of the following could be considered rebates if offered to an insured in the sale of insurance
EXCEPT Correct Ans-dividends from a mutual insurer-Dividends paid to policyholders of a
mutual insurer are not considered to be a rebate because the policy specifies that they might be
paid.
Which of the following applicants would NOT qualify for a Keogh Plan? Correct Ans-Someone
who works 400 hours per year (must work 1000 hours)
For how long are insurers required to maintain records pertaining to life insurance solicitation?
Correct Ans-3 years
Who determines the eligibility and contribution limits of an HRA? Correct Ans-employer
both
An insurance policy that only requires a payment of premium at its inception, provides
insurance protection for the life of the insured, and matures at the insured's age 100 is called
Correct Ans-Single premium whole life
, An insured receives an annual life insurance dividend check. What term best describes this
arrangement? Correct Ans-Cash option
COBRA applies to employers with at least Correct Ans-20 employees
In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT
Correct Ans-Type of investment
Variable Whole Life insurance is based on what type of premium? Correct Ans-Level fixed
The dividend option in which the policyowner uses dividends to purchase a term policy for one
year is referred to as the Correct Ans-one-year term option
If $100,000 of life insurance proceeds were used in a settlement option, which paid $13,000 per
year for ten years, which of the following would be taxable annually? Correct Ans-$3,000
Under a pure life annuity, an income is payable by the company Correct Ans-Only for the life
of the annuitant
All of the following are differences between individual and group health insurance EXCEPT
Correct Ans-Individual insurance does not require medical examinations, while group
insurance does require medical examinations.
Solutions
Which of the following statements is most correct concerning the changing of an irrevocable
beneficiary? Correct Ans-They can be changed only with the written consent of that
beneficiary.
Which of the following provides coverage on a first-dollar basis? Correct Ans-basic expense
policy
Which of the following statements is TRUE about a policy assignment? Correct Ans-It
transfers the ownership rights under the policy to the extent expressed in the assignment form
A guaranteed renewable disability insurance policy Correct Ans-Is renewable at the insureds
option to a specified age
Which of the following is a generic consumer publication that explains life insurance in general
terms in order to assist the applicant in the decision-making process? Correct Ans-Buyer's
Guide
Which of the following is another term for an authorized insurer? Correct Ans-Admitted
Insurers who meet the state's financial requirements and are approved to transact business in
the state are considered authorized or admitted into the state as a legal insurer.
,Which of the following statements is correct regarding a whole life policy? Correct Ans-The
policyowner is entitled to policy loans
What is the purpose of a conditional receipt? Correct Ans-It is intended to provide coverage
on a date prior to the policy issue.
All of the following could be considered rebates if offered to an insured in the sale of insurance
EXCEPT Correct Ans-dividends from a mutual insurer-Dividends paid to policyholders of a
mutual insurer are not considered to be a rebate because the policy specifies that they might be
paid.
Which of the following applicants would NOT qualify for a Keogh Plan? Correct Ans-Someone
who works 400 hours per year (must work 1000 hours)
For how long are insurers required to maintain records pertaining to life insurance solicitation?
Correct Ans-3 years
Who determines the eligibility and contribution limits of an HRA? Correct Ans-employer
both
An insurance policy that only requires a payment of premium at its inception, provides
insurance protection for the life of the insured, and matures at the insured's age 100 is called
Correct Ans-Single premium whole life
, An insured receives an annual life insurance dividend check. What term best describes this
arrangement? Correct Ans-Cash option
COBRA applies to employers with at least Correct Ans-20 employees
In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT
Correct Ans-Type of investment
Variable Whole Life insurance is based on what type of premium? Correct Ans-Level fixed
The dividend option in which the policyowner uses dividends to purchase a term policy for one
year is referred to as the Correct Ans-one-year term option
If $100,000 of life insurance proceeds were used in a settlement option, which paid $13,000 per
year for ten years, which of the following would be taxable annually? Correct Ans-$3,000
Under a pure life annuity, an income is payable by the company Correct Ans-Only for the life
of the annuitant
All of the following are differences between individual and group health insurance EXCEPT
Correct Ans-Individual insurance does not require medical examinations, while group
insurance does require medical examinations.
